Resource Commodities

Brazil overhauls decades-old mining law to lure investment

BRASILIA (Reuters) - Brazil’s President Michel Temer issued two decrees on Tuesday overhauling 50-year-old mining laws in attempt to draw investment to the sector and implementing rules on the collection of higher mining royalties.

The changes to the 1967 mining code include measures to allow for mining titles to be used as guarantees for financing, aimed at stimulating investment in sector and to allow miners to continue exploring for minerals while production license applications are pending, the Mines and Energy Ministry said.

The decree will also apply stricter rules to miners for the recovery of degraded areas and mine closure planning, the ministry said.

“What we are announcing today reflects the best practices internationally in mining,” Temer said at a signing ceremony in the presidential palace.

“We want mining that is increasingly competitive, innovative and sustainable.”